Germany won't consider contributing to a fund for the Yasuni-ITT project that would compensate Ecuador for not extracting oil from an Amazon reserve, Dirk Niebel, Germany's minister for Economic Cooperation and Development, said in a letter last week.

Niebel wrote the letter on Sept. 14 in answer to a request on the issue by Ute Koczy, a member of the German parliament for the Green Party. Koczy posted the letter on her website.

Ecuador's president, Rafael Correa, said at a conference in London last October that Germany had pledged to contribute $50 million a year to the Yasuni-ITT fund. Ecuador then said it was also in talks with France and Spain about financing the project.

However, Sebastian Lesch, Niebel's spokesman, said Tuesday that Germany never made a commitment to pay into the fund, but did follow the initiative with interest. In the letter Niebel said Ecuador had failed to answer several questions regarding the project, and that there is a lack of clear statements on what guarantees Ecuador would give for a permanent abandonment of the project.

Also, so far no other donor has been found who would support the initiative, the minister said.

Germany was also concerned that it would be setting a precedent by supporting a project that pays a country for not doing something, Lesch said.

Niebel said it is doubtful the Yasuni-ITT project has advantages over other initiatives, such as the Reducing Emissions from Deforestation and Degradation initiative.

Ecuador's Correa came up with the nature-for-oil initiative in 2007, and planned to use it as leverage in global warming deals.

He said the project would keep 850 million barrels--or 20% of Ecuador's proven oil reserves--under the ground, and save 407 million metric tons of carbon dioxide from being released into the atmosphere by avoiding deforestation.

Earlier this year, however, Correa said Ecuador would start drilling for oil at the ITT field in the Yasuni National Park if the country didn't get the funds he says it was pledged. The Yasuni Park is the country's largest nature reserve and a UNESCO biosphere reserve in Ecuador's Amazon jungle.

Ecuador in August signed an agreement to create a trust fund for international contributions to the Yasuni-ITT initiative. Chile so far is the only country that has contributed--a modest $100,00.